Iconic brand Billabong has fallen seven percentage points in the last quarter, while Nike remained steady at 10 per cent.

For females, the preference is for affordable, current and almost "disposable fashion", with well-priced, up to date brands Cotton On (14 per cent) and Supre (10 per cent) leading the way.

Cost and availability are the main drivers for females when considering their fashion choices.

Target consistently remains among the most preferred brands in this category, perhaps boosted by its advertising campaign with fashionista Gok Wan and Australian designer Collette Dinnigan, who have added fashion credibility to the family department store.

"This is more than a seasonal effect; this is the future of fashion. Fast, disposable, on-trend and cheap, a deadly combination for brands that believe heritage means anything to young people. "Brands need to stick to what they know and do best. That's surf wear for surf brands and replicating runway looks for our new entrants in fast fashion," said Lifelounge CEO Dion Appel.

The report, underpinned by 1000 comprehensive interviews each quarter, also showed that 28 per cent of retail purchases were made online.

Major brand chains are still the most preferred way to shop for our youth, with 42 per cent claiming their last purchase was bought via a chain store.

A lengthy period of favourable currency exchange for Australians has resulted in almost a third (28 per cent) of purchases being made over the internet as young people look for a good deal, ease and convenience.

Independent stores have suffered sharp decline over the last four years. They accounted for only 18 per cent of clothing purchases in 2013, down from 34 per cent in 2009.

"Youth have grown up in an instantaneous world where they don't wait for anything. So why would they wait for something to arrive by snail mail unless it's the absolute must have," Mr Appel said.

"Department stores have variety and are favoured but look out - this won't last forever as online stores start to nail same day delivery."

Almost one third of youth shop online. Picture: Thinkstock.Source: News Limited

Cost has become increasingly important when purchasing fashion with 53 per cent responding that it is important, up 41 per cent earlier this year.

"Everyone wants a share of Australian youth's wallet and there's no exception for fashion. As image conscious as young people are, they're even savvier about cash," Mr Appel said.

"The future is bright and brands that deliver more than fashion and more on lifestyle will win a greater share of the market."

The youngest segment surveyed, 16-17 year olds, are more influenced by others such as celebrities or friends when it comes to choosing clothing.

The drivers change dramatically for the 25-30 year olds, who are more likely to consider the designer (16 per cent) and the origin of where the items were manufactured (11 per cent) as important, compared with their younger counterparts (14 per cent and 9 per cent).

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